Businesses have an immense number of financial transactions and strategies to keep track of. From ensuring that the company’s debt to profit ratio sits within acceptable limits to tracking product life cycles and reducing the cost to acquire new products, the finances of a business are anything but simple. The good news is that business owners and managers do not need to tackle this aspect of management alone; a financial management company that specializes in businesses is often a great boon. In order to determine whether this type of service would be helpful for you, you must first learn more about the unique advantages that come with business financial management.
Do I Need Financial Management If I Have an Accountant?
One common misconception is that a business does not need the services of a financial management company if they already have an accountant. However, the reality is that an accountant and a financial manager perform very different tasks; your accountant will not provide the type of advice and tracking that your financial manager will. Thus, it is best to leave your accountant to their typical work and hire a business financial management company to take care of the rest.
Ideal Traits Of A Business Financial Management Company
Once you start to look for the right financial management organization for you, you may find that you have a variety of options. Choosing the right partner for your business comes down to what traits and services they can offer vis a vis the specific needs of your company. The following are a few of the most important qualities of a good business financial management company.
Comprehensive Budgeting And Forecasting
Your accountant’s role is going to be within the realm of reconciling your books and checking on your expenditures. However, a financial manager will be more concerned with helping you to properly budget and forecast based on past data. Not only does proper and comprehensive budgeting help to ensure that you do not run into issues with debt, but it also works to cut down on unnecessary spending, meaning that more of every sale converts to a return on your investment. A financial manager will help you plan for expansion when possible and save money where it is most needed so that your business handles its money as efficiently as it can.
A Plan To Enhance Asset Efficiency
Speaking of efficiency, the assets that you use in your business are key to providing a return. A financial management company can look at your assets and cut the fat from them, resulting in a lean and effective process that reduces or even eliminates unnecessary spending. If you make large purchases for your business (such as commercial vehicles and equipment), getting more of a return on each of those asset purchases is critical to recouping your costs and turning your work into profits.
Managing Of Inventory
Rare is the business whose goal is not to increase sales overall. Whether you offer products or a service, you still have an inventory to manage—even if it is just the handiwork of the employees you trust. If your firm spends $300,000 per year on inventory to make $3 million in sales, a business financial management company can work with you to turn that cost into $150,000 without compromising the $3 million in sales. This will inform not only what opportunities your business opens up in the future but also how you purchase and utilize your inventory in general.
A Personalized Plan
One of the most important aspects to look for in a business financial management company is its ability to craft a plan that is personalized to you. The specifics of your business are unique, and any company that offers a cookie-cutter solution to your problems and goals is not looking out for your best interests. The right financial manager will review the strengths, weaknesses and vision of your operation to understand where changes can be made and where already excellent processes can be reinforced.
Trust The Professionals To Help You Invest
Whether you are still debating on the need for a business financial management company or you are ready to lock in your financial management partner, be sure to trust the experts with your best interests in mind. The professionals at Inflection Advisors would be happy to help you develop and implement a completely customized strategy that suits the specific needs and risks of your business. Reach out to learn more about the services that we offer or to get started on the journey to improved financial health in your business.
